Baku, Azerbaijan, July 25
By Fikret Dolukhanov – Trend:
Uzbekistan attracted JPMorgan Chase, the largest US bank by assets and the world's largest bank by market capitalization to advise the government in obtaining a sovereign credit rating and issuing sovereign bonds, Uzbek media reported referring to the decree of the president of Uzbekistan.
The document said that respective bodies in Uzbekistan are not currently working at the proper level to integrate with international capital markets, which limits opportunities to attract additional sources of external financing and expand their volumes.
“The study shows that there is a need for obtaining a sovereign credit rating of the country, which allows getting corporate ratings by leading banks and large enterprises of Uzbekistan and significantly expands the republic's opportunities to attract foreign investments and loans without providing state guarantees,” the decree said.
Mirziyoyev instructed the finance minister to sign relevant agreements with a consortium of banks led by JPMorgan Chase, and, following the selection process, with relevant international companies to provide consulting and other services in the process of obtaining a sovereign credit rating, issuing and placing sovereign bonds.
The Finance Ministry must submit a "roadmap" for obtaining a sovereign credit rating and issuing sovereign bonds by the end of July 2018.
Funds coming from the placement of sovereign bonds will be spent on construction, reconstruction and overhaul of affordable housing, roads, improved drinking water supply and sanitation, urban and rural improvement, implementation of the Obod Qishloq (Comfortable Village) and Obod Mahalla (Comfortable Yard) programs, as well as other infrastructure projects.
It was earlier reported that the American McKinsey & Company will be responsible for development of the chemical industry of Uzbekistan and attracting foreign investment, whereas Boston Consulting Group will prepare a comprehensive strategy for development of the oil and gas industry, identify and develop prospective investment projects, attract foreign investments in exploration, development, production and processing of hydrocarbon raw materials
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